The Learning and Skills Council wants half of all FE colleges to have at least one department with the accolade by 2004, a year ahead of the government's original plan.

Modern economy

Chief executive of the Learning and Skills Council John Harwood said: "We need colleges that are fast-moving, first to respond to change and that can give both adults and young people access to the enhanced vocational learning they need to succeed in a modern economy.

"Together these centres will underpin a modern further education sector, contributing to the nation's vocational skills and the drive to boost competitiveness."

The government is putting £100m into the scheme over the next three years.

The successful colleges will be given more resources with the aim that they become more flexible and responsive to the needs of employers.

The Adult Skills Minister, John Healey, said: "Centres of vocational excellence will play an essential economic role by giving individuals the skills they need to enable them to find work in a fast changing jobs market and providing businesses with the skilled workers they need to succeed."